Authors
ABSTRACT
This study analyzed the welfare implications of collective action, in the form of membership in rural-based organizations, among 351 dairy buffalo farmers in Batangas, Bohol, Cavite, Laguna, Isabela, and Nueva Ecija. Using household consumption expenditure per capita as an indicator of household welfare, results of the Linear Regression with Endogenous Treatment showed that membership in rural-based organizations and herd size increased welfare. The likelihood of the farmers in joining a rural-based organization was also determined to be positively and significantly affected by education, location dummy variables, and total transaction costs. Higher transaction costs incurred by the farmers induced a higher likelihood of membership. Overall, rural-based organizations play a significant role in linking farmers to suppliers, markets, and institutions. Members have taken advantage of reduced transaction costs, better technology transfer and adoption, convenient milk consolidation, and affordable credit services that ultimately improved the household welfare of the sample farmers.
